15 February 2024
Section 43B(h) provides for disallowance of the sum payable to SME if not paid within the prescribed time. My queries are as follows:
1. Will the supplier be an SME as defined under the MSME Act but not having Udyog Aadhaar will be covered by section 43B(h)?
2. If an SME supplier asks the buyer to inform if it is registered under the MSME Act and the supplier although registered replies that he is not registered as MSME. Will payments to such suppliers would be out of the purview of the provision?
3. If any part of the due is retained by the recipient of supply in terms of the contract as retention money or security deposit would that amount be out of the purview of section 43B(h). Whether there would be any restriction in deducting the security deposit or retention money?
4. Can the payment to SME be converted into a loan with the express consent of the supplier to come out of the purview of s. 43B(h ).
CAclubindia
